Section 8 Fair Market Rent (FMR) for ZIP 54636 - 2027

Location: La Crosse-Onalaska, WI | Metro: La Crosse-Onalaska, WI-MN HUD Metro FMR Area

Investment Score for ZIP 54636

Monthly Rent (2BR)

$1,470

Median Price (2BR)

$297,993

1% Rule

0.49%

Annual Yield

5.92%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,020
1 Bedroom	$1,120
2 Bedrooms	$1,470
3 Bedrooms	$1,880
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,470	$297,993	0.49%	F
3BR	$1,880	$386,737	0.49%	F
4BR	$2,370	$439,732	0.54%	F
5BR	$2,749	$526,608	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

16,727

Median Household Income

$96,384

Housing Units

6,611

Renter Percentage

28.6%

Occupancy Rate

98.8%

Renter Occupied

1,865

A decision tree for evaluating whether to invest in ZIP 54636 (Holmen, WI) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent, and demand indicators. Let's break it down.

Step 1: Does FMR $1220 clear debt service on a $414,152 property?

No: The FMR of $1220 is insufficient to cover the debt service on a property valued at $414,152. Assuming a typical mortgage rate of 5%, the annual debt service would be approximately $20,708. Dividing this by 12 gives a monthly debt service of about $1726, which is higher than the FMR. This makes the investment unfeasible without additional sources of income or subsidies.

Step 2: Is market rent $1,160 above, at, or below FMR?

Below FMR: The market rent of $1160 is below the FMR of $1220. This suggests that tenants receiving Section 8 vouchers might struggle to pay the difference between the market rent and the voucher amount, leading to potential financial strain or vacancy issues.

Step 3: Are 28.6% renters + 12-day DOM enough demand?

Yes: With 28.6% of residents being renters and an average Days on Market (DOM) of 12 days, there is sufficient demand. A lower DOM indicates quicker turnover and less time spent trying to fill vacancies, which can be beneficial for cash flow stability. However, the market rent being below the FMR remains a critical issue.
No: Even though the DOM is low, indicating some level of demand, the fact that market rent is below the FMR means that the overall financial viability of the investment is questionable. Landlords may face challenges in attracting and retaining tenants who qualify for Section 8.

In conclusion, investing in ZIP 54636 for Section 8 properties is not advisable due to the insufficiency of the FMR to cover debt service and the market rent being below the FMR. Despite the relatively strong demand indicated by the low DOM, the financial structure does not support a sustainable investment strategy.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.